The Springdale, Arkansas-based producer of chicken, beef and pork will pay $40.25 per share in cash for AdvancePierre. That's almost double the initial public offering price for AdvancePierre, which was taken public by Oaktree Capital at $21 per share in September 2016. The firm still owns 42% of the company's outstanding shares.

AdvancePierre's shares surged 9.1% in pre-market trading on the news.

"This combination will allow AdvancePierre to accelerate its growth and broaden its distribution network by leveraging Tyson's existing distribution infrastructure and go-to-market capabilities," AdvancePierre president and CEO Christopher D. Sliva said in a statement.

Morgan Stanley is serving as exclusive financial advisor to Tyson, while Credit Suisse and Moelis are advising AdvancePierre.

Tyson said on April 24 that it was exploring the sale of three non-protein businesses — Sara Lee Frozen Bakery, the Kettle business and Van's — which produce items such as frozen desserts, waffles, breakfast bars and soups. Rothschild is acting as the company's financial advisor on the sale.